CMM Interstate & Federal Regulations 5 — Questions and Answers
Question 1: Which federal regulation governs the measurement of oil production from federal leases and prescribes standards for metering equipment?
- 30 CFR Part 3160
- 30 CFR Part 3170 (Correct answer)
- 43 CFR Part 3500
- 40 CFR Part 98
Correct answer: 30 CFR Part 3170
30 CFR Part 3170 (Onshore Oil and Gas Operations) establishes federal standards for oil and gas measurement, including meter calibration and testing requirements.
Question 2: The Safe Drinking Water Act (SDWA) Underground Injection Control (UIC) program regulates hydraulic fracturing injection wells under which class?
- Class I
- Class II (Correct answer)
- Class III
- Class V
Correct answer: Class II
Class II UIC wells include injection wells associated with oil and gas production, such as those used for saltwater disposal and enhanced recovery operations.
Question 3: Under federal coal leasing regulations, royalties from federal coal production are split between the federal government and states in what proportion?
- 90% federal / 10% state
- 50% federal / 50% state (Correct answer)
- 48% federal / 52% state
- 75% federal / 25% state
Correct answer: 50% federal / 50% state
Federal coal royalties are shared 50/50 between the U.S. Treasury and the state in which production occurs under the Mineral Leasing Act.
Question 4: The BLM's Onshore Oil and Gas Order No. 4 specifically governs:
- Drilling requirements and well spacing
- Measurement of oil (Correct answer)
- Environmental impact reporting
- Royalty valuation for gas production
Correct answer: Measurement of oil
Onshore Oil and Gas Order No. 4 establishes standards and requirements for the measurement of oil from federal and Indian leases.
Question 5: When a federal lease expires due to cessation of production, an operator may prevent termination by commencing reworking operations within:
- 30 days
- 60 days
- 90 days (Correct answer)
- 180 days
Correct answer: 90 days
Federal lease regulations generally allow operators 60-90 days to commence reworking or drilling operations after cessation of production to maintain the lease.
Question 6: Interstate commerce jurisdiction of FERC over natural gas does NOT extend to:
- Wholesale sales for resale in interstate commerce
- Transportation of gas in interstate commerce
- Gathering lines in the producing field (Correct answer)
- Storage of gas in interstate facilities
Correct answer: Gathering lines in the producing field
Field gathering lines are generally exempt from FERC jurisdiction under the Natural Gas Act and are regulated, if at all, by state authorities.
Question 7: Which reporting form do federal oil and gas lessees use to report monthly production volumes to ONRR?
- Form ONRR-2014 (Report of Sales and Royalty Remittance) (Correct answer)
- Form BLM-3160-3 (APD)
- Form ONRR-4430 (Solid Minerals Production and Royalty Report)
- Form SF-299 (Application for Transportation and Utility Systems)
Correct answer: Form ONRR-2014 (Report of Sales and Royalty Remittance)
ONRR Form 2014, the Report of Sales and Royalty Remittance, is the primary monthly reporting document for oil and gas production and royalty payments on federal leases.
CMM Interstate & Federal Regulations 5
Which federal regulation governs the measurement of oil production from federal leases and prescribes standards for metering equipment?